Special San Francisco Wage Laws for Retail Workers

The San Francisco Board of Supervisors has passed two new ordinances that provide special wage and hour protections for employees of “formula retail establishments.” The ordinances are collectively referred to as the Retail Workers’ Bill of Rights, and will go into effect January 4, 2015 and become operative July 3, 2015.

The Retail Workers’ Bill of Rights will apply to San Francisco Formula Retail Establishment with 20 or more employees. The San Francisco Planning Code defines what a “formula retail establishment” is, which generally includes chain stores such as retail store, chain restaurants, bars, and fast food restaurants.

The Retail Workers’ Bill of Rights imposes five main requirements on formula retail establishment employers. The first requirement is that employers must give new employees a good faith written estimate of the employee’s expected minimum number of scheduled shifts per month, and the days and hours of those shifts. This written notice does not have to include on-call shifts.

The second requirement of the Retail Workers’ Bill of Rights is that employers must pay two hours of pay for each on-call shift that an employee is required to be available for but is not called in to work. This required two hours pay will only apply if the employee had less than 24 hours’ notice that the shift has been cancelled or moved to another date or time.

The third requirement of the Retail Workers’ Bill of Rights is that employers must give part-time employees the same starting hourly wage as that paid to full-time employees holding comparable positions.

The fourth requirement of the Retail Workers’ Bill of Rights is that if a retail business is sold, the purchaser has to keep the seller’s non-managerial incumbent employees who worked for the retail business for at least 90 days before the sale. The purchaser will be required to keep these employees for at least 90 days.

Finally, the fifth requirement of the Retail Workers’ Bill of Rights requires employers to post the poster that the San Francisco Office of Labor Standards Enforcement (“OLSE”) will prepare and publish explaining the Retail Workers’ Bill of Rights.

The OLSE will have the authority to investigate violations of the Retail Workers’ Bill of Rights. The San Francisco City Attorney’s office will also be able to file civil actions against employers who violate these ordinances. Retail employers should determine whether the new ordinances

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